SB1242

Regular Session

Relating to the acquisition of land and facilities by the Texas State Technical College System.

LowStandard timeline

Low Cost

Effective:2025-09-01

Enforcing Agencies

Texas State Technical College System Board of Regents

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: September 1, 2025 (Applies to all closings occurring on or after this date).
Agency Rulemaking: No external agency rulemaking is required. However, the TSTC Board of Regents must update internal bylaws to reflect this independent authority; monitor TSTC Regents' Rules for these conforming changes.

Immediate Action Plan

Audit Pipeline: Identify any pending real estate dispositions to TSTC scheduled to close after September 1, 2025.
Update Templates: Redraft standard Letters of Intent (LOI) and PSA templates to remove THECB approval as a Condition Precedent for TSTC deals.
Verify Authority: For active deals, request the specific TSTC Board of Regents resolution authorizing the purchase to ensure it does not self-impose the old THECB requirement.

Operational Changes Required

Contracts

Purchase and Sale Agreements (PSAs): For any transaction with TSTC scheduled to close after September 1, 2025, you must strip out standard "Subject to THECB Approval" contingencies. Retaining this clause gives the state a contractual "out" that the law no longer requires. Amend closing conditions to require only TSTC Board of Regents approval.

Hiring/Training

Deal Teams: Instruct acquisition and disposition teams to shorten projected closing timelines. The "regulatory pause" previously factored in for Coordinating Board review is no longer necessary.

Reporting & Record-Keeping

Due Diligence: Cease preparation of THECB justification packets for TSTC transactions. For title and authority purposes, the TSTC Board of Regents meeting minutes authorizing the purchase are now the sole necessary proof of valid authority.

Fees & Costs

Budget Impact: Neutral to Positive. No new fees are introduced. Legal and administrative costs associated with shepherding the transaction through the THECB process are eliminated.

Strategic Ambiguities & Considerations

While the statute removes the *legal* requirement for THECB approval, TSTC’s internal operating procedures (Regents' Rules) may still reference the old process until formally updated. There is a risk that TSTC internal legal counsel or administrative staff may continue to pause transactions for a "courtesy review" by the THECB due to institutional inertia. You must clarify with TSTC counsel early in the deal that they intend to utilize their new statutory autonomy.

Need Help Understanding Implementation?

Our government affairs experts can walk you through this bill's specific impact on your operations.

Schedule Consultation

Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

Legislative Timeline

This bill's path through the Texas Legislature

TopicsEducation Education--higher Education--higher--institutions & Programs Education--higher--state Coordination Property Interests Property Interests--real Property Texas State Technical College System Public Lands, Buildings & Resources

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

Senate Research Center	S.B. 1242
89R10448 CMO-F	By: Birdwell
	Education K-16
	3/31/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

In 2013, the Texas Higher Education Coordinating Board (THECB) underwent review by the Sunset Advisory Commission. That session, S.B. 215 (83R) by Senator Birdwell, the THECB Sunset bill, which among other recommendations from the Sunset Commission, included removing the requirement for THECB to approve capital projects for public higher education institutions.

Due to an oversight, Texas State Technical College (TSTC) was not relieved from the requirement in this legislation, which occurred because TSTC is included in a different part of the Education Code than the other public higher education institutions. This oversight was not found until this past summer when THECB noticed the requirement was still in the TSTC portion of statute.

Purpose:

S.B. 1242 will correct statute to the intent of S.B. 215 (83R).

As proposed, S.B. 1242 amends current law relating to the acquisition of land and facilities by the Texas State Technical College System.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 135.02(c), Education Code, to delete existing text requiring the Texas Higher Education Coordinating Board to review and approve the acceptance or acquisition of any land and facilities if the board of regents of the Texas State Technical College System (board of regents) requests to place the land and facilities on its educational and general buildings and facilities inventory, and the combined value of the land and facilities is more than $300,000 at the time the board of regents requests the property to be added to the educational and general buildings and facilities inventory.

SECTION 2. Effective date: upon passage or September 1, 2025.

Senate Authors

Sen. Brian BirdwellRepublican · Primary Author

House Sponsor

Rep. Terry WilsonRepublican · Primary Sponsor

Bill Text(with markup)

S.B. No. 1242

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the acquisition of land and facilities by the Texas
	State Technical College System.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 135.02(c), Education Code, is amended to
	read as follows:
	(c) The board may accept or acquire by purchase in the name
	of the State of Texas land and facilities in any of the counties in
	which a campus or extension center is located. [~~The coordinating~~
	~~board must review and approve the acceptance or acquisition of any~~
	~~land and facilities if:~~
	[~~(1)~~ ~~the board of regents requests to place the land~~
	~~and facilities on its educational and general buildings and~~
	~~facilities inventory; and~~
	[~~(2)~~ ~~the combined value of the land and facilities is~~
	~~more than $300,000 at the time the board of regents requests the~~
	~~property to be added to the educational and general buildings and~~
	~~facilities inventory.~~]
	SECTION 2. This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 2, 2025

TO:	Honorable Brandon Creighton, Chair, Senate Committee on Education K-16

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB1242 by Birdwell (Relating to the acquisition of land and facilities by the Texas State Technical College System.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

719 Texas State Technical College System Administration, 781 Higher Education Coordinating Board

LBB Staff:

JMc, FV, LBO, CBR

Related Legislation

Explore more bills from this author and on related topics

Frequently Asked Questions

Common questions about SB1242

What does Texas SB1242 do?

SB 1242 eliminates the statutory requirement for the Texas Higher Education Coordinating Board (THECB) to approve Texas State Technical College (TSTC) land and facility acquisitions valued over $300,000. This deregulation streamlines the transaction lifecycle for commercial real estate developers and property owners selling to the System by removing a mandatory, time-consuming state-level regulatory review. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: September 1, 2025 (Applies to all closings occurring on or after this date).

Who authored SB1242?

SB1242 was authored by Texas Senator Brian Birdwell during the Regular Session.

When was SB1242 signed into law?

SB1242 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce SB1242?

SB1242 is enforced by Texas State Technical College System Board of Regents.

How urgent is compliance with SB1242?

The compliance urgency for SB1242 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB1242?

The cost impact of SB1242 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does SB1242 address?

SB1242 addresses topics including education, education--higher, education--higher--institutions & programs, education--higher--state coordination and property interests.

Legislative data provided by LegiScanLast updated: November 25, 2025

Need Strategic Guidance on This Bill?

Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.